The IRS is a federal body responsible for ensuring that taxpayers fulfill their tax obligations on time. They use different means to persuade taxpayers to pay their tax liability. Apart from ensuring tax payment, the IRS also launches schemes/reforms to help out innocent taxpayers from the unnecessary tax burden. Spouse tax relief is one such tax relief scheme, where the IRS protects the right of innocent and injured spouses from being unfairly subjected to enforcement actions in joint returns. In this blog, we present an overview of spouse tax relief. Read on.
What is a Spouse Tax Relief?
Federal law allows married couples to file a joint tax return to lower their tax liability. Filing a joint tax return makes the tax liability joint and several, meaning that both parties (jointly or individually) will be held responsible for tax payment. If one partner defaults, the other partner will also be held liable. The liability continues to exist even after divorce. Spouse tax relief is an IRS scheme available to relieve the innocent spouse from the tax burden. However, the scheme is not for every spouse, they must prove their eligibility for the program.
Types of Tax Relief for Spouses
There are two types of tax relief for spouses:
Innocent Spouse Tax Relief
The IRS Innocent Spouse Relief is a program that allows a spouse to be relieved of the tax liability for a joint tax return due to mistakes or fraud by their partner unknown to them. If the relief is granted, the innocent spouse is not responsible for the tax, penalties, or interest on the joint tax return. Innocent spouse relief is available to spouses who did not know or have no reason to know the understatement or error in their tax return. They need to fill out Form 8857 Request for Innocent Spouse Relief within 2 years of receiving IRS notice of an audit or tax bill on their joint account.
Injured Spouse Tax Relief
Injured spouse relief is an IRS program that allows a spouse to reclaim the tax refunds that have been used to pay their partner's overdue debts on applications including past-due child support and debts to federal agencies. Injured spouse relief is applicable on a spouse’s overdue taxes for which the applicant was not liable. To request for injured spouse relief, you need to fill out form 8379 within 3 years from the date of filing of tax return and 2 years from the date of tax payment, whichever is later.
How can an IRS Tax Attorney help?
IRS tax attorneys spent years learning and comprehending state and federal tax laws. They are familiar with all types of IRS tax relief programs and schemes and can help you deal with the IRS effortlessly. Tax attorneys can help ascertain the right type of tax relief for spouses program for you based on your qualification and help you draft your application. They can also represent you in the court of appeal. If you are seeking spouse tax relief in Dallas, consult a trusted tax attorney in Dallas experienced in dealing with IRS spouse tax relief cases.
